Indian shares extend fall to more than four per cent

Mumbai, June 27 : Indian shares extended losses to more than four per cent this morning, tracking sharply weaker global markets and weighed down by expectation that domestic inflation would remain in double digits for some time.

India's annual inflation rate has risen further to 11.42 percent in mid-June tumbling Indian share markets.

Investors feel that the recession in America and inflation could be the factors for today's fall.

"The market was down yesterday also, so soon after the market opened, it witnessed down by 450 points. The market can further fall, and the main reason can be recession in America and also inflation," said Mahesh Nahar, an investor.

While others say that political uncertainty may be the cause.

"Today's weakness in the market is due to global market weakness, political uncertainty and finance minister has given some hint that there will be some action ...during the next month...because of inflation not coming under control," said Siddhartha Kuawala, another investor.

At 11:07 a.m the main 30-share Bombay Stock Exchange (BSE) index was down 4.2 percent, or 605.12 points, at 13,816.70 mark. The benchmark is down about 32 percent so far this year.

All the index's components were in the negative zone.

Shares in financials and automobiles were knocked down on worries that high interest rates would crimp consumer demand.

ANI